BMI View: Within the pharmaceutical sector, the Kazakh government is looking to reduce its importreliance and also to serve its growing healthcare needs. In light of the Kazakh government's commitment toramping up healthcare expenditure and incentivising foreign investment, we believe multinationalcompanies will localise manufacturing to a limited extent. Given the logistical challenges, limited skilledlabour and a lack of necessary infrastructure, we expect that investment in local production will primarilyoccur through larger companies.

Headline Expenditure Projections

Pharmaceuticals: KZT335.18bn (USD1.87bn) in 2014 to KZT395.60bn (USD2.04bn) in 2015; +18.0%in local currency terms and +9.4% in US dollar terms.

Healthcare: KZT1,740.14bn (USD9.70bn) in 2014 to KZT2,027.16bn (USD10.47bn) in 2015; +16.5%in local currency terms and +8.0% in US dollar terms.